Mega constitution paves way for listing

Mega has updated its company constitution, making it easier for the file storage and encryption firm with more than 18 million registered users to list after a failed attempt to join the NZX through a back-door listing earlier this year.

The company filed a new constitution to the Companies Office on Monday adding specific provisions for listing the company, stating that the "board shall take all reasonable steps to prepare the company for listing on a recognised stock exchange" and setting share sale restrictions for a maximum 12 months from the date of joining a bourse unless the board determined otherwise.

Mega chief executive Graham Gaylard says the new constitution will make it easier for the company to list, but declined to comment on the time frame for going public.

The company's website is already geared up to provide shareholder updates, with a page devoted to shareholder reports "when Mega becomes a publicly held company registered on a recognised stock exchange".

In May, the Auckland-based company aborted plans to list on the NZX via shell company TRS Investments after a series of delays in gaining approval to go ahead with the deal.

TRS would have acquired Mega for $NZ210 million ($A187.39 million) by issuing 700 million shares at NZ30 cents apiece to Mega shareholders once a share consolidation was completed.

Mega shareholders would then have owned 99 per cent of TRS, which would have changed its name to Mega.

Mega was launched by internet entrepreneur Kim Dotcom in 2013 to replace his Megaupload empire, which was frozen after his high profile arrest at the behest of the US federal government.

He has since stepped back from the firm to fight his extradition and to bankroll the Internet Party, which failed to gain seats in parliament at last year's general election.

Mega has 16 registered shareholders, of which director Shen Zhao Wu is the biggest investor with almost 26 per cent.

Mr Shen is a regular donor to the National Party through his Contue Jinwan Enterprise Group, and increased his stake in Mega in a share issue amounting to 6.7 per cent of the company in February.